DRAM & NAND Market Update Q1 2026

Market Overview

The global memory market has entered a structurally tighter phase as AI infrastructure demand continues to absorb a growing share of DRAM and NAND supply. What began as gradual tightening through 2025 accelerated sharply in the second half of the year, with pricing rising across both memory and storage segments.

Server-grade and DDR5 products have seen the most significant pressure, while industrial memory remains particularly exposed due to reliance on legacy nodes and deprioritised wafer capacity. Lead times have extended, allocation controls have become more common, and price volatility remains elevated.

Key takeaway: AI demand is now a structural driver of the memory market rather than a short-term cycle.

DRAM Market Trends

What’s happening

• Supply has tightened across server, industrial and consumer DRAM.
• DDR5, particularly RDIMM, is experiencing the strongest upward pricing pressure.
• Industrial DRAM has seen acute inflation due to reduced focus on legacy production.
• Spot market volatility increased toward the end of 2025 as suppliers prioritised higher-margin
  

What to expect

• Constrained supply is likely to persist through the first half of 2026.
• Server and industrial DDR5 will remain the tightest categories.
• Buyers are increasingly moving toward forward purchasing and multi-source strategies.
• Further contract price increases are expected in the near term.

Operating in the AI-Driven Memory Cycle

The market environment has shifted from cyclical swings to structurally managed supply. In this environment:

• Forecast quality and forward visibility increasingly influence allocation.
• Earlier ordering and flexible scheduling improve supply positioning.
• Long-term supplier partnerships are proving more resilient than purely transactional sourcing.

For many OEM and industrial customers, memory procurement now requires earlier planning horizons and closer supply chain alignment than in previous cycles.

In the current environment, customers who rely on spot purchasing are seeing the greatest exposure to allocation and price volatility, while those engaging early with RDS are achieving significantly better supply continuity and cost predictability.

Immediate Implications for RDS Customers

Supply Chain Risk

• Increasing likelihood of allocation, MOQ increases, and reduced supplier flexibility
• Long-life and industrial-grade components are becoming harder to secure without forward

Cost Exposure

• Prices are rising rapidly and unpredictably
• Delayed ordering increases exposure to week-by-week pricing escalations

Lead Times

• Standard lead times are extending significantly
• Late orders risk being pushed into 2027–2028 delivery windows

Recommended Actions - Act Now

Market conditions continue to tighten, with suppliers actively revising pricing, allocation policies, and lead times. Customers without confirmed orders or forecasts are at growing risk of being deprioritised.

Waiting is no longer a neutral decision - it actively increases risk.

To protect supply continuity and control costs, Review Display Systems strongly recommends:

• Placing orders now to lock pricing and secure production slots
• Sharing forward forecasts and project timelines to strengthen allocation priority
• Committing volumes where possible to reduce allocation exposure
• Engaging early with RDS to identify alternative components or sourcing strategies
• Planning memory and storage requirements well beyond immediate build schedules

How RDS Can Help

RDS works closely with global memory manufacturers and tier-one partners to help customers navigate constrained markets. Early engagement enables us to:

• Secure allocation ahead of wider market tightening
• Mitigate cost volatility through strategic planning
• Maintain continuity of supply for long-life and industrial applications
• Support proactive lifecycle and sourcing decisions

RDS will continue to monitor developments closely and provide timely market intelligence as conditions evolve.

Concerned about availability, pricing, or lead times? Speak to our team today before options narrow further.